Shinhan Bank joins hands with the Philippines’ Metropolitan Bank

South Korea’s Shinhan Bank has joined hands with the Philippines’ Metropolitan Bank & Trust Company, becoming the latest lender to expand footprint in the consumer capital market of the Southeast Asian country this year timed with the 70th anniversary of normalization of diplomatic ties between the two countries.

Shinhan Bank said on Thursday that it signed a comprehensive business partnership agreement with Metropolitan Bank & Trust Company. Under the partnership, the two lenders will work together in areas of letter of credits and trade finance and loans.

Metropolitan Bank is the second-largest lender in the Philippines by asset. The lender manages an overseas branch in Korea while Shinhan Bank also operates a branch in Manila, allowing the two financial companies to boost synergy in both countries through the latest partnership.

An unnamed official from Shinhan Bank said that the latest partnership will be a good example of active exchange in the private sector marking the 70th anniversary of diplomatic relations between Korea and the Philippines this year. The partnership with Metropolitan Bank will allow expansion in diverse sectors such as in trade finance, overseas remittance, and corporate finance.

Korean lenders have latetly been aggressive in expanding presence in the Southeast Asian country.

KEB Hana Bank teamed up with Cebuana and M.Lhuillier, the country’s largest and second-largest remittance service provider, in February, 2016, and launched simple overseas money transfer service 1Q Transfer. KB Bank also launched KB Philippines PHP direct transfer service in February, last year, allowing direct money transfer in local currency peso.

Woori Bank acquired 51 percent stake in Philippines savings bank Wealth Development Bank in 2016 and advanced into the country’s retail finance market by joining hands with Vicsal, a major retailer in the Philippines that own remaining 49 percent share in the bank. Vicsal Group has over 1 million members as well as department stores and supermarket chain across the Philippines.